Strong investment performance has been the primary contributor to a 17% increase in AuM to £5.7bn during Q2. Net flows have been impacted by post-referendum uncertainty but remain positive. AuM has grown another £140m (to £5.8bn) this week. We incorporate the strong Q2 performance into our forecasts: FY16e EPS +7% and outer years by +9-10%. Rolling forward to cal’17 earnings, we apply an 11x PE multiple revising our target price to 374p (from 310p). We reiterate our BUY recommendation.
